Most clergy pride themselves on being biblically literate. We realize that biblical literacy is not a one-shot affair; we continue to dedicate time and energy to scriptural study throughout our careers.
Each year, retirement savings rules change, but even when the modifications are small, they may affect you and your retirement plans. It’s helpful to assess how those amendments may apply to your organization’s retirement plans like 401(k)’s and 403(b)’s, and both traditional and Roth IRAs.
The SECURE 2.0 Act, enacted in 2022, made it easier for workers to save for retirement and for employers to offer retirement plans. If you can afford to increase your contributions to retirement plans, you will reap two tax benefits:
1) lowering your taxable income even more and,
2) growing your savings tax deferred. Since contributions to your 403(b) come directly from your salary and are made with pre-tax dollars, your taxable salary decreases.
In 2025, some modifications to this law may change how people build their nest eggs. Understanding these changes is crucial for maximizing your retirement savings, optimizing tax advantages, and positioning yourself for a financially secure retirement.
Let's look at the most significant amendments to the Secure 2.0 Act. In 2025, savers will benefit from an increase in retirement contribution limits for various types of accounts:
Other new retirement savings provisions for 2025 are enhanced catch-up contributions for older employees. If you are between the ages of 60 and 63, you may be eligible to contribute up to $11,250 to your 401(k) or 403(b), if permitted by your plan. For those nearing retirement and looking to increase their retirement savings, this is particularly useful.
On the student loan side, employers can now match student loan payments with retirement plan contributions to an employee’s retirement account. This match helps staff build retirement savings while paying off debt. For example, if an employee is paying $200 per month towards his/her student loan, the employer can match that $200 into a retirement plan, like a 403(b) or 401(k).
The 2025 regulation updates introduce new opportunities to save more, optimize tax benefits, and plan better for your financial future, whether you are approaching retirement or looking to maximize catch-up contributions. If you have questions about what’s best for you, consult a financial planning professional to help you sort through your options. Remember, MMBB members can access our financial planning specialists at no cost as a benefit of membership.
Translations of any materials into languages other than English are intended solely as a convenience to the non-English-reading public. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist.
Las traducciones de cualquier material a idiomas que no sean el inglés son para la conveniencia de aquellos que no leen inglés. Hemos intentado proporcionar una traducción precisa del material original en inglés, pero debido a las diferencias de la traducción a un idioma extranjero, pueden existir ligeras diferencias.
You will be linking to another website not owned or operated by MMBB. MMBB is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by MMBB of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from MMBB.
If you “Proceed”, the link will open in a new window.
Back to Top
Next